Investors

Performance

Overview (2016-Yearly)

(Last Updated :- 30-03-2017)

The performances of these major
segments are discussed below:

Retail sales

The retail business unit of Al Maha
is oriented towards delivering better and faster service to its
customers. With a network of 200 retail stations, Al Maha reaches
every corner of the country, emerging as a one stop destination for
retail customers with ever-changing needs. Al Maha's ubiquitous
presence across the country makes it one of the Oman's top
corporate brands.

Fuel prices were
deregulated/market-linked in mid Jan 2016, phasing out subsidies
and brought uniformity in fuel prices throughout Oman. This
presented many challenges and opportunities to your Company and we
are working in close coordination with the Government to face these
challenges which are critical to maintain the growth in this
segment.

The increasing trend of fuel prices
during the year is represented below:

Despite the decrease in sales
volume due to decrease in demand, the retail sales value has
increased by 15% in 2016 when compared with 2015 due to the
increase in fuel unit prices during the year, post subsidy removal
in mid Jan 2016, as indicated above.

Higher retail fuel prices affected
our retail sales volume growth in 2016 and rising inflation next
year might hit consumer demand. However, Al Maha sees immense
potential for growth in retail business in the years ahead and is
strategically positioned to increase market share in this segment
by opening more new stations and renovating / rebranding existing
stations.

Commercial sales

Al Maha continued its growth in the
Commercial & Industrial segment, driven by increased demand
from the public utility sector and other major customers. Further,
increase in fuel unit prices from mid Jan 2016, significantly
pushed up Commercial sales, as the new commercial pricing is linked
to the retail pump rates announced by the Government on a monthly
basis. Overall, we achieved an increase of 24% growth in this
business segment in the year 2016 over 2015.

Deregulation of fuel prices from
mid Jan 2016 has brought up exposures which resulted in higher
volume in Accounts receivables. A review of new credit policy &
procedures to reduce the time of "Order to Cash Cycle" has been
done and will be implemented.

Other sales

Other sales comprise aviation fuel
and lubricants sales.

Aviation sales segment has seen a
reduction of 11% in 2016 mainly on account of significant drop in
international oil prices, despite increased fuel supplies to other
commercial airlines at the Muscat International airport.

Although, we encounter aggressive
competition in lubricants business, plans are in place to improve
lubricants business in 2017.

Financial performance

2016
RO-Million

2015
RO-Million

Increase/
(decrease)

RO-Million %

Sales

402.2

349.3

52.9

15%

Expenses

21.5

19.96

1.54

8%

Net Profit after tax

8.1

9.2

(1.1)

(12%)

Net assets

51.4

50.2

1.2

2%

Earning Per Share - RO

0.118

0.133

Net assets per share - RO

0.745

0.727

Return on equity - %

15.8%

18.3%

Sales have increased to RO 402.2
million in 2016 (2015: RO 349.3 million), an increase of RO 52.9
million (15%) on account of increase in retail and commercial
businesses after setting off decrease in aviation & lubricant
sales.

Expenditure rose by RO 1.54 million
(8%) mainly due to the increase in transportation expenses,
employees cost, depreciation, License fees, maintenance expenses,
technical fees, provision for impairment of receivables and other
expenses offsetting the decrease in filling stations operating
expenses.

Net profit after tax decreased to
RO 8.1 million in 2016 (2015: RO 9.2 million), a decrease of RO 1.1
million (12%) mainly due to the increase in operating &
administration expenses.

Return on equity decreased in 2016
when compared with 2015 due to decrease in net profit in 2016
despite increase in net assets during the same period.

Below is a chart which indicates
the net profit, dividend and net equity since 2011:

Overview (2016-Q3)

(Last Updated :- 25-10-2016)

Despite the prevalence of low oil
prices and the challenges it offers and the cost push pressures
resulting from subsidy reforms, Your Company continues to focus on
growth and remain positive about future prospects. The gradual
recovery in oil prices and the wise economic policies of the
Government of Sultanate of Oman has a clear impact in guiding the
overall economy of the Sultanate in the coming years.

Summary of Financial Performance (RO '000)

-

I Quarter 2016

II Quarter 2016

III Quarter 2016

Jan-Sep 2016

Jan-Sep 2015

Variance %

Sales

84,404

101,854

108,620

294,878

262,355

12%

Gross Profit

6,308

7,723

8,189

22,220

21,205

5%

Other Income

518

453

688

1,659

1,410

18%

Total Expenses

(4,774)

(5,688)

(5,713)

(16,175)

(14,664)

10%

Net Profit after tax

2,052

2,488

3,164

7,704

7,951

(3%)

Earnings Per Share - RO

-

-

-

0.112

0.115

(3%)

Net Assets Per Share - RO

-

-

-

0.739

0.709

4%

Salient features

Total sales during Jan-Sep 2016 has
increased to RO 294.9 million from RO 262.4 million, an increase of
RO 32.5 Million (12%).

Retail sales
increased during the period mainly due to increase in domestic fuel
prices from mid Jan 2016, despite drop in product demand mainly in
the border areas. Continuing our focus on increasing filling
stations net work throughout Oman, 5 new filling stations have been
opened during the period taking the number of filling stations to
198, with another 4 filling stations in various stages of
construction.

Commercial sales
increased further due to the increased demand from the public
utility sector and other major customers. With the Government
continuing its focus on infrastructure development, we look forward
positive growth in this segment.

Aviation sales
volume registered a positive growth during the period due to
increased fuel supplies to Oman Air & other commercial airlines
operating in the Muscat International airport.

Main variances in the statement of financial position

Trade and other receivables have
increased by RO 35.7 million, compared to the same period last
year, mainly as a result of increased commercial sales value due to
increase in domestic fuel prices since mid Jan 2016 and due to
decline in cash inflows during the period as a result of the
current market conditions, especially those relating to the
circumstances of the Gulf States.

Trade and other payables have
increased by RO 6.1 million due to the increase in purchases value
of petroleum products from Oman Oil Refineries and Petroleum
Industries Company (ORPIC) in September 2016, compared to the same
period last year.

Financial Statements

Despite the prevalence of low oil prices and the challenges it offers and the cost push pressures resulting from subsidy reforms, our Company continues to focus on growth and remain positive about future prospects...